The trend in buying music from overseas, both through air travel and over the Internet is having a knock-on effect on Bermudian retailers who are feeling the pinch.

The Bermuda Quarterly Bulletin of Statistics figures this week revealed a jump of about a third, some 32 percent, on last year in the amount spent on buying records, tapes and compact discs from trips abroad or through Internet sites such as the popular Amazon.com.

The Government statistics show that those who declared their purchases and paid tax on them spent some $313,000 on music in the second quarter of 1999.

In the same three months last year Bermudians spent only $236,000.

"Retail is suffering from an increase in sales overseas,'' conceded Eddie DeMello, owner of the Music Box in Reid Street. "While sales are sort of normal for this time of year, there are definitely more people shopping on the Internet and overseas.

"And our business is definitely affected. People buying on the Internet or bringing stuff back has been damaging. Over the last couple of years there has been a definite drop in sales.'' Mr. DeMello says that the situation has not yet reached the stage that the shop would have to close down, but has affected his business in such a way that he has trimmed down his staff.

Anthony Smith, sales person at Dub City Music Stores, said the easy access to the Internet has badly affected their sales.

Mr. Smith said: "Not everyone has the money to go abroad to buy things, but to buy on the Internet is just the cost of a local call by e-mail. And it does have an effect on the business because it is so easy to go on the Net.

"We have lost sales because of it, and while we still get the customers coming through the doors, we have lost a sale that they got on the Web.'' Michael DeMello, manager and part-owner of the recently revamped Music World says, however, his business hasn't been hit Net adds different tune "Our business has actually grown over the past year since we expanded the business.

"We get the new releases the same time as the States.

"A lot of times people think they are getting a deal on the Internet, but by the time you pay the shipping charges and tax, you can end up paying more money.

"But I am sure it affects the business in general, every little bit takes a piece of the overall cake.'' Joe Lopes manager and part owner of Sound Stage believes that the government figures are misleading because many purchases abroad are not declared.

"They may say spending is at $10 million, but it is probably three times that.

"Just based on anecdotal evidence from people I know, most people don't declare everything.

"But buying abroad has an effect on sales, and it has in the past.

What is happening now is that the economy is booming at the moment, and people do shop overseas, but our sales have not gone down by a third while imports go up by a third.

"I am not worried about them shopping away.

"People have in general more to spend and they still come here.'' An arm and a leg? While 12-year-olds Danielle Baikie and Rachel Burns spend their pocket money locally, many residents are increasingly shopping abroad for CDs and tapes either physically or electronically through the Internet.